You are currently viewing Valuation Versus Value Creation: Why The Latter Is A Better Measure For Business Growth

Somdutta Singh, Serial Entrepreneur | Founder, CEO, Assiduus Global | Investor | Bestselling Author | Advisor – Govt of India.

What is the purpose of a business? For some founders, it’s financial success; for others, stability; for still others, running a business offers a sense of freedom. Your priorities can and do evolve over time. For instance, you might need a more accommodating schedule after your company reaches a certain level of cash flow. That’s why the most successful businesses recognize that creating value for customers, teams and investors must be any enterprise’s primary goal and that these groups’ interests are inexorably intertwined. This means it is impossible to create sustainable value for just one group. Creating value for the client should be the main priority, but this cannot be done without selecting, developing and rewarding the proper personnel or providing investors with consistently favorable returns.

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